Online deal rooms became truly widely used over the past a couple of years. Corporations get plenty of advantages using them. So there is no wonder the electronic data room virtual data room market became rather vast and profitable. Brand new providers come out often, and every one of them wants to surprise users with new tools on this never-ending war for the interest of the audience.
But do online meeting rooms actually differ that much from generic virtual storages? And why would a company give money for it? Since there are numerous individuals who want to ask these questions, let’s understand the technology behind the data room.
What is a virtual deal room?
Let us begin with the basics and take a look at the app itself. It is a virtual storage where firms can store their sensitive files. But although it is the most important feature of such technology, the list of its tools doesn’t end on just being a repository. Virtual data room offers its users a complete interface for all business interactions. Here partners can exchange documents, discuss issues, get ready for meetings and some other. Basically, implementing this technology a brand will have a full range of handy instruments that will help to develop the performance of the team and whole enterprise.
So, whilst generic online repositories can only give a virtual space so a brand owner can store documents there, VDRs are a complete company tool. These instruments can be used for Due Diligence, Mergers and Acquisitions, fundraisings, IPOs and other business interactions.
Security is above all
Of course, not each corporation interacts with the sensitive information constantly. But even though this information can be not that important, any CEO would want to have their files stolen or illegally used. Virtual storages like popular Dropbox or Google Drive are not perfectly protected – varied cases of data leaks have shown it to us very clearly.
So, the most valuable difference of digital data rooms is the data encryption and different ways of protection. Of course, generic cloud hosting services encrypt their transmission lines too – but not exactly the transferred data itself. And if anyone has a direct link to the document, it can be easily stolen by malefactors.
Data room providers encrypt not only transfer lines but documents as well. There is no way they will be exposed to any kind of threat caused by malicious acts of hackers. Also, all electronic data rooms have a two-factor authentication. It means that to enter the system the team member will need to enter the code that was sent to their smartphone in an SMS when signing in.
Besides that, the administrator of the online meeting room can manage the level of access other partners have. Settings can be changed at any moment. And if any extreme situation appears, the room administrator can eliminate the document remotely or take away the access to it.
Unlike simple online repositories, VDRs are meant to upgrade the working process of the company and among employees. So on top of that that users can share files with each other, they can as well get involved in discussions, handle diverse votings, manage Q&As and much more. It is extremely convenient to have all instruments in one interface.
Also, directors have a chance track the performance of their businesses in the VDR . Some providers even have an artificial intellect implemented in their programs. It helps to forecast events and trends and get more detailed insights. Besides that, business owners can track themployees and realize if there are some problems in the work of the business.
In conclusion, there surely are many reasons to implement a virtual data room in your corporation and stop using simple virtual repositories . Once you try an electronic data room, you will not want to stop using it.